Another "plan" for the SA Clothing and Textile Industry?

Renato Palmi

Is this not a little too late?

Will the industry have time to adjust to both the ending of the quotas and the implementation of new industrial/trade policies or guidelines within one or two months. Was not the imposition of the quotas on Chinese imports meant to provide space for both the industry and government to come together as a collective to strategise, develop and even implement plans during the quota period?

The Department of Trade Industry (DTI), through which I have interacted with some hardworking, dedicated and astute women in the division, says the Customised Sector Programme (CSP) will be ready for implementation. However, have we not heard this before?

Still working on it

In March 2006, Shareen Osman from the DTI said, "Government is working on a strategic vision." Two years later, the DTI said they were "still working on a plan." In August 2007, the Trade and Industry Minister said that the programme was being formalised. Yet in August 2006, the South African Textile Federation said the CSP was finalised but the "programme has not yet been introduced" because of the lack of support by the retailers. Government has been ineffectual in dealing with the ongoing dispute between retailers and manufacturers. Have the retailers now come on board or is the CSP going to be implemented without their buy-in?

The report says, "The state will step up efforts to curb illegal imports, which many manufacturers consider the biggest threat to the industry." In February 2008² Iqbal Sharma, the acting deputy director-general of DTI claimed illegal imports had been "eliminated". One such policy is the label regulations. Unfortunately, my research shows this policy has not been widely publicised and confusion still exists most so within the fashion sector.

Import catch-22

A welcome aspect of the report is the consideration of eliminating duties on fabric not produced in the Southern African Customs Union; however, the catch in the report that has a direct impact on local designers is the government's proposed scrutiny on import duties for textiles not produced in "sufficient quantities". What does government mean by "sufficient quantities?" From the fashion industry perspective, our designers have and continue to be restrained by the lack of variety in textiles. Textile importers are not going to import small quantities of fabric to meet the demands of our designers if such quantities will receive import duties.

Taking into consideration wage hikes, union activity, poor productivity and the downturn in the economy, will this new policy provide the space and means for manufacturers to produce cost effective apparel? Will the policy be an element of what I call "the tick-box syndrome", where policy and plans are implemented but have no significant impact on the industry, thereby affording the implementers a backdoor escape of blaming industry for any shortcomings? This remains to be seen.

¹ State Plan to Beef Up Clothing and Textiles - Business Day, 11 August 2008
² Quotas on Chinese textiles and clothing prove fruitless - Business Report, 3 February 2008